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Indian Dry Bulk Terminal Business of Louis Dreyfus Armateurs Collapses

Logistic News - Published on Mon, 27 Jul 2020

Image Source: Louis Dreyfus Armateurs
ALBA Asia Pvt Ltd, the Indian dry bulk port operating company controlled by French shipping group Louis Dreyfus Armateurs SAS, has collapsed with state-run Visakhapatnam Port Trust terminating a contract for running a dry bulk terminal at the port just five years into a 30 year deal. The contract was terminated because the terminal operator defaulted on fulfilling the minimum guaranteed throughput obligations stipulated under the contract

Separately, a bankruptcy court in Mumbai has initiated insolvency proceedings against Tuticorin Coal Terminal Pvt Ltd, the thermal coal and non-coking coal handling terminal run By ALBA Asia, at state-run VO Chidambaranar Port Trust (VOC Port Trust), after Bank of India filed a petition seeking to recover unpaid dues of INR 90.87 crore. The terminal operator owes INR 355.79 crore to a clutch of seven banks led by Bank of India.

West Quay Multiport is a special purpose company formed by ALBA Asia to develop and operate a 3 million tonne capacity dry bulk cargo handling terminal at Visakhapatnam port. The operator had quoted a revenue share price bid of 47.17 per cent to win the 30-year contract. Bank of Baroda has an exposure of INR 110 crore in the project.

West Quay Muliport stopped operations and “abandoned” the project in late 2018, three years after starting operations in May 2015. Port contracts at government-owned major port trusts are liable for termination if they fail to achieve the minimum volumes for three consecutive years. West Quay never achieved the MGT of 520,000 tonnes a year since opening the facility.

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Posted By : Yogender Pancholi on Mon, 27 Jul 2020
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